864 N.W.2d 436
N.D.2015Background
- In 1992, Marlin Sabinash owned real property subject to a Bank of North Dakota mortgage.
- In 2001, Stutsman County taxes were delinquent; the county foreclosed its tax lien and issued an auditor’s deed to the county in 2006.
- Dana Baker acquired the property at a public auction and received a county deed recorded thereafter.
- In 2008, the Bank of North Dakota foreclosed its mortgage lien and the property was sold at sheriff’s sale to Raymond Sabinash.
- Raymond Sabinash assigned his interest to Marlin Sabinash, who recorded the sheriff’s deed.
- Baker filed quiet-title action; the district court held the State’s mortgage could not be inferior to a county tax lien and granted Baker summary judgment, which this Court reverses and remands.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether county tax lien priority overrides State mortgage lien | Sabinash: tax lien preempts prior State mortgage. | Baker: State mortgage is inferior to tax lien only if statute so provides. | No; priority determined by statute supports State mortgage priority. |
| Effect of 1943 amendments on priority between tax lien and State mortgage | Sabinash: amendments relegate tax lien above mortgage. | Baker: amendments altered prior precedent against State lien. | Amendments do not change legislative intent; State mortgage retains priority. |
| Role of 57-02-40 and its plain language in priority | Sabinash: 57-02-40 preserves subordination of tax liens to State mortgage. | Baker: 57-02-40 favors county tax lien supremacy. | 57-02-40 language unchanged; does not alter this priority framework. |
| Whether prior case law (Divide County lineage) governs after 1943 amendments | Sabinash: pre-1943 precedence controls. | Baker: amendments supersede earlier precedents. | Divide County framework applied consistently with statutory amendments. |
Key Cases Cited
- State v. Glaser, 858 N.W.2d 920 (2015 ND 31) (statutory interpretation is a question of law, fully reviewable)
- Glinz v. Heasley, 142 N.W.2d 603 (N.D. 1966) (federal lien priority against tax lien under Division County logic)
- State v. Divide County, 283 N.W. 184 (ND 1938) (earlier perfected lien superior to later liens; State mortgage priority)
- State v. Sheridan County, 6 N.W.2d 51 (ND 1942) (mortgage lien superior to subsequent tax lien; pre-1943 context)
- State v. Griggs County, 10 N.W.2d 245 (ND 1943) (mortgage lien of State superior to later tax lien)
- Hale v. Ward County, 818 N.W.2d 697 (ND 2012) (summary judgment standard and de novo review)
- Trinity Hospitals v. Mattson, 723 N.W.2d 684 (ND 2006) (summary judgment is proper when no genuine issues of material fact)